Incitec Pivot (IPL)

Incitec Pivot
’s full-year results and guidance earlier this week drew a cautious response from investors and analysts. A full-year net profit of $530.1 million was up 20 per cent on the 2010 result and broadly in line with consensus forecasts. But the company’s relatively downbeat guidance for the year ahead has seen the share price slide about 4 per cent. Managing director James Fazzino said he expected a slow and “bumpy" improvement in the US economy. As a result, any volume growth for its Americas explosives business is likely to be modest, and earnings improvements will be “largely internally generated". For its fertiliser business, Mr Fazzino said he expected a continued recovery in demand on Australia’s east coast, with water allocations along the Murray-Darling River system “positive", and a solid 2011 harvest set to underpin strong farmer cash flows.